High inflation, increased energy costs, the war in Ukraine and supply chain problems are cited as key causes.
Germany is becoming more and more less attractive for foreign investors, due to the high costs, reveals a survey by Ernst & Young. However, it remains a strong and competitive location for investment, the company points out.
According to the EY survey, the number of investment projects in Germany fell again in 2022 and reached the lowest level since 2013. Foreign investment has thus been falling continuously since 2017.
“Germany is undoubtedly a strong and competitive location,” said EY CEO Henrik Ahlers, while stressing that “on the cost side, the country has recently lost its attractiveness – especially for industrial companies.” According to the same study, France remains first in the European ranking.
In total the Europe it seems stagnant on the subject of foreign investment, as, as the same survey states, “the post-pandemic recovery plans have not materialized”.
High inflation, increased energy costs, the war in Ukraine and supply chain problems are cited as the main causes of the stagnation.
Source :Skai
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